Terms to Convert Limited Liability Companies into Closed Joint Stock Firms to Be Unveiled Shortly

The Ministry of Commerce, Industry and Investment Promotion said that it would shortly announce the procedures and requirements needed for converting limited liability companies (LLCs) into closed joint stock companies (CJSC) in response to Royal directives and new economic regulations. Qais Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion, stressed that the issuance of Royal orders to launch an initiative to convert LLCs into CJSCs, an effort undertaken by the government, was aimed at ensuring the sustainability of the new firms which, he said, constitute the largest volume in Omani economic structures. The step would also help enhance audit, governance, disclosure and transparency in dealings, Al Yousef added. In a statement to the Oman News Agency (ONA), the minister said that this initiative provides flexibility in management, speed in performance and ease of trading in shares. He said that the step would also augment the confidence of investors, creditors and customers in the sustainability of the transformed companies. He added that the Ministry seeks to facilitate the conversion of LLCs into CJSC by simplifying procedures. For his part, Dr. Saleh Said Masan, Undersecretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, stressed that the Royal blessing for adopting capital market development procedures serves the development of the commerce and industry sector in the Sultanate of Oman. Launching the initiative to encourage the conversion of LLCs into CJSC provides an opportunity for companies' growth, more flexibility in decision-making, more confidence among those dealing with the transformed companies and more sustainability in the status of the firms that would last for generations to come. Source: Oman News Agency